Why Tuesday, July 2 will be a defining day for Ethereum
And suddenly it gets very close! According to Eric Balchunas, usually a reliable source when it comes to ETFs, Ethereum ETFs can be traded starting Tuesday, July 2. So you still have a little more than two weeks to stock up on ETH, at least if you expect a rising price.
Ethereum Application Prediction
This prediction is based on recent responses from the American stock market watchdog, the SEC, to various ETF providers. The SEC responded positively to the filings (S-1 forms) and had few comments. Balchunas expects providers to respond to the SEC’s feedback within a week.
The SEC previously approved applications (19b-4 forms) for eight providers, including well-known names such as BlackRock and Fidelity. The S-1 approval is the final step before trading in Ether ETFs can begin.
Independence Day weekend
Balchunas believes the SEC wants to complete the filings quickly so they can complete this before the long weekend (probably Independence Day). Although this is not certain, he believes this is the most likely scenario at this time. American independence will be celebrated this year on Monday, July 4.
SEC Chairman Gary Gensler had already indicated earlier that the final approvals for Ether ETFs would be completed before the summer anyway. The launch of these funds could bring a significant influx of new money into the second largest cryptocurrency, Ethereum.
Signals indicate that demand for Ethereum is already increasing, especially from long-term investors. This is according to figures from CryptoQuantwhich are showing an increase in the amount of Ethereum held by this type of investor.
Added value of Ethereum ETF
ETFs are investment products that are traded on the stock exchange, just like shares. This means you can buy and sell Ethereum ETFs through your regular investment account, just like you do with stocks or other investments.
The value of the ETF is linked to the price of Ethereummeaning the ETF’s value will rise or fall as the price of Ethereum rises or falls.
It doesn’t matter to you and me, we can use BLOX to buy Ether. But large investment funds are not allowed to do this and prefer to outsource as much as possible.
